2010 (7) TMI 430

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....lding that interest is not required to be paid when there is express provision in Rule 14 of the Cenvat Credit Rules, 2004, to the effect the interest is required to be paid in instances where cenvat credit has been taken wrongly?" 2. The facts stated briefly are that during the course of audit it was observed that the respondent availed Cenvat credit of Rs. 7,01,682/- on capital goods, during March, 2006 to March 2007, which were not used in or in relation to manufacture of finished goods. On being pointed out by the audit, the respondent voluntarily debited/reversed the wrongly availed Cenvat Credit. However, the respondent did not pay interest of Rs. 53,712/- thereon. Similarly, it was observed that the respondent had availed ce....

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....005 the assessee had only Rs. 1,979/- in balance. The respondent challenged the order of the adjudicating authority before Commissioner (Appeals) contending that the wrongly availed Cenvat Credit had not been utilized by them as there was sufficient balance available in their Cenvat Credit account right from the date of taking the said credit till the date(s) of its reversal. Commissioner (Appeals) allowed the appeals and set aside the order-in-original. The revenue carried the matter in appeal before the Tribunal but did not succeed. 3. Learned Standing Counsel for the appellant-revenue has invited attention to the provision of Rule 14 of the Rules to submit that the same provides that where Cenvat Credit has been taken or utilize....